A judge has reversed Douglas County’s approval of the $4.3 billion Sterling Ranch planned community, ruling that the developers have not shown they could provide enough water.

The order from Douglas County District Court Judge Paul King this week says the commissioners violated state law that prohibits local government from allowing new development unless the developers have demonstrated an ability to supply adequate water.

This has implications for real estate development around Colorado because it addresses possible limits to growth in a semi-arid area where governments traditionally have allowed new construction despite scarce water.

Much of the Front Range suburban development south of Denver — including Highlands Ranch and Castle Rock — was approved at a time when the South Platte River was heavily-subscribed. Developers relied on wells drilled deep into underground aquifers. Today, communities are struggling to reduce their reliance on municipal wells because aquifers are being depleted.

King based his 14-page order on state law that defines a permit as “any preliminary or final approval” for development. “Local government is to make a determination of adequacy of water supply only once during the development permit approval process,” King wrote.

The court determined “that an applicant for a planned development permit must establish that the development will have a water supply through build-out and this water supply is sufficient in terms of quantity, dependability and quality.”

Douglas County officials argued that they should be allowed to make decisions about the adequacy of water supplies incrementally as planned new housing projects proceed.

For years, the Sterling Ranch developers have worked to persuade Douglas County that they can provide sufficient water to sustain up to 31,000 residents in 12,050 homes. The commissioners last year granted initial approval for the development, to be located on 3,400 acres south of Chatfield State Park.

Sterling Ranch’s managing partner Harold Smethills responded to the court order with a prepared statement: “Douglas County had relied upon the Colorado statute passed by the legislature that sets forth that it is in the sole discretion of the county commissioners as to when a water supply is to be shown as sufficient. This ruling, if it is upheld, eliminates that discretion.”

The water supply plan presented to county authorities “is a solid plan” and “we continue to implement it, making modifications as a result of the court’s decision,” the statement said.

Developers are making agreements with the city of Aurora and “other regional entities” to line up water, and Sterling Ranch “already has sufficient water to serve the homes initially planned in the master-planned community,” the statement said. “We are assembling additional water and are moving forward with the development of our project.”

The plans presented over several years include requirements that construction and landscaping minimize use of water. A rainwater harvesting pilot project was installed just over a year ago. Collecting rainwater is illegal in Colorado, but Gov. Bill Ritter signed legislation allowing research to be done, enabling this project.

Douglas County authorities on Friday were reviewing the court order, county spokeswoman Wendy Holmes said.

Bruce Finley covers environment issues, the land air and water struggles shaping Colorado and the West. Finley grew up in Colorado, graduated from Stanford, then earned masters degrees in international relations as a Fulbright scholar in Britain and in journalism at Northwestern. He is also a lawyer and previously handled international news with on-site reporting in 40 countries.

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